To understand how to maximize the sales value of your business it is important to understand the basics of M&A and valuations.
Free cash flow
To know the value of your business you will need to calculate the free cash flow your business will generate in the future. Know how to calculate the free cash flow and which elements increase value. Understand how an EBITDA multiplier works and how it is used in price negotiations.
Type of transactions
There exist several types of transactions, such as a share deal, asset deal or carve out. Before you decide to sell your business you need to choose which transaction type is best for you.
Type of Buyers
To prepare your business for a sale you need to understand what type of Buyers exist and which Buyers could be interested in your business. There are two types of Buyers, being strategic or financial buyers. Each of those has their own specifics and require different things from you and your business. Know which Buyer is most likely to buy your business.